FelCor Announces Exchange Offers for Its 9 1/2% Senior Notes Due 2008 And 8 1/2% Senior Notes Due 2011

Press Release: FelCor Lodging Trust Incorporated
September 14, 2001
IRVING, TX -- FelCor Lodging Trust Incorporated (NYSE: FCH), the nation's second largest hotel real estate investment trust (REIT), and its subsidiary, FelCor Lodging Limited Partnership (FelCor LP), yesterday announced the commencement of offers to exchange up to $100 million in aggregate principal amount of FelCor LP's 9 1/2 percent Senior Notes Due 2008, and up to $600 million in aggregate principal amount of FelCor LP's 8 1/2 percent Senior Notes Due 2011, for like amounts of FelCor's LP's outstanding 9 1/2 percent Senior Notes Due 2008 and 8 1/2 percent Senior Notes Due 2011. The outstanding Senior Notes Due 2008 were issued and sold on January 22, 2001, and the outstanding Senior Notes Due 2011 that were issued and sold on June 4, 2001, in each case in a transaction exempt from registration under the Securities Act. The form and terms of the exchange notes are the same as the form and terms of the outstanding notes, except that the exchange notes have been registered under the Securities Act of 1933, do not bear legends restricting their transfer and are not entitled to registration rights. The exchange notes evidence the same debt as the outstanding notes, and both the outstanding notes and the exchange notes are governed by the same indenture. The outstanding notes were, and the exchange notes will be, issued by FelCor LP and fully and unconditionally guaranteed by FelCor and certain subsidiaries of FelCor and FelCor LP. The exchange offers will expire at 5:00 p.m., New York City Time, on October 11, 2001, unless extended by FelCor LP. The exchange agent for both exchange offers is SunTrust Bank, Corporate Trust Department, 25 Park Place, 24th Floor, Atlanta, Georgia 30303-2900; Attention: George T. Hogan.

Each of the exchange offers is being made by means of a prospectus, dated September 12, 2001, and the related letters of transmittal, and each is subject to the terms and conditions contained in those documents. Each prospectus forms a part of a registration statement on Form S-4 that has been declared effective by the Securities and Exchange Commission. Interested parties may obtain a copy of each of the registration statements from the Securities and Exchange Commission's website, www.sec.gov and can obtain a copy of each of the prospectuses and the letters of transmittal from FelCor's website at www.felcor.com .

On May 10, 2001, FelCor announced the $2.7 billion acquisition, through merger, of the hotel assets of MeriStar Hospitality Corporation. The transaction will result in a pro forma market capitalization of $6.0 billion for the combined company, bringing the number of hotels owned by FelCor to 298, with approximately 78,000 rooms and suites, and resulting in FelCor being the largest hotel REIT. FelCor is the world's largest owner of Embassy Suites®, Crowne Plaza®, Holiday Inn® and independently owned Doubletree®-branded hotels. Upon the closing of the merger, FelCor also will become the world's largest independent owner of Hilton®, Radisson®, Sheraton® and Westin® hotels. MeriStar Hotels and Resorts (NYSE: MMH) will continue to manage the hotel assets acquired from MeriStar. FelCor's hotel portfolio consists of 185 hotels with approximately 50,000 rooms and suites and is concentrated primarily in the upscale and full-service segments. FelCor has a current market capitalization of approximately $3.3 billion. Additional information can be found on the Company's website at www.felcor.com .

With the exception of historical information, the matters discussed in this news release include ``forward looking statements'' within the meaning of the federal securities laws that are qualified by cautionary statements contained herein and in FelCor's filings with the Securities and Exchange Commission.

SOURCE: FelCor Lodging Trust Incorporated